Which measurement is utilised when non-financial assets are assessed for fair value purposes?
A) Highest and best use
B) Historical cost
C) Lower-of-cost-or-market
D) Average use

Question

Quizplus · Accepted Answer

When non-financial assets are assessed for fair value purposes, the measurement utilized is the highest and best use. This means the asset's value is determined based on its potential use that would result in the highest value, such as its market value, rather than its current use or cost of acquisition.

Which Measurement Is Utilised When Non-Financial Assets Are Assessed for Fair